Should You Get a Two Crore Term Insurance?

In today’s world, ensuring the financial safety of one’s family has become the ultimate goal for many. Given the nature of life’s uncertainty and challenges that often tend to dent one’s financial standing, building financial protection coverage becomes a necessity. In this regard, having a comprehensive cover like a two crore term insurance policy can act as a reliable financial safety net, especially when the insured can no longer support the family or has passed away suddenly.

The extensive coverage can enable the beneficiary obligaties to meet their financial obligations or account for unforeseen expenses without dipping into their savings or relying on someone else to support them financially. The fact that a 2 crore term insurance policy extends more than just the comprehensive sum assured makes the plan useful for many individuals.

On that note, let’s check the primary features and benefits of two crore term insurance to understand its scope for protection better.

How Does the Two Crore Cover Help?

A term plan with a two-crore cover has been designed to offer a financial safety net to the insured and their dependents, empowering them to meet unforeseen financial situations. Typically, the plan’s high death benefit allows them to meet their financial obligations such as ongoing EMIs, loans, and everyday expenses with much ease.

The high cover value ensures that the beneficiaries do not have to seek external aid or dip into their fixed deposits, savings, or investment units to meet their financial needs. This helps them remain financially sufficient and ensures their stability.

Besides the coverage, the insured has the option to further extend their coverage and insurance benefits. In other words, they can explore rider benefits such as accidental death benefits, critical illness cover, and premium waivers to increase their financial protection to ensure comprehensive support.

It is generally assumed that the premium of a 2 crore insurance policy would be quite high due to their cover value. However, the plans have been designed to provide extensive coverage while ensuring the same is accessible to the masses. To ensure this, insurers have set their premium at affordable rates to make them accessible and not strain the policyholders’ payment capacity.  Due to their extensive cover value, individuals are often encouraged to perceive two crore insurance plans as an investment towards one’s family’s financial future that gets built over time through regular premiums.

Regardless, individuals are always encouraged to assess the basic features and associated benefits of the term insurance plan to understand their scope and limitations. It is important to gain insights before signing the policy document to make an informed choice.

To gain an accurate estimate, individuals can access a term life insurance calculator and gain insights into their suitable coverage and premium combination. The tool will also help understand how different factors can impact their coverage.

What To Consider to Avail a Suitable Coverage?

Selecting ideal insurance becomes quite easy once an individual understands how different factors can impact their coverage and overall scope. Typically, individuals take into account these factors to gauge the impact –

Age:

With increasing age, the risk of developing age-related diseases and health conditions also increases. This makes insurers perceive the aged applicants as risky and more likely to file a claim in the initial year of the policy. To counter the risk associated they are likely to charge them a higher premium amount compared to what they ask younger applicants to pay. This is the main reason, why individuals are always encouraged to avail of an insurance policy at an early age, and a 2 crore term insurance policy is no different. To understand the broader implications of age on coverage and premium, individuals should use an online calculator and plan their purchases accordingly.

Income:

When getting an insurance policy, it is important to understand whether their salary or income would support the premium amount or not. This will help them avoid feeling overwhelmed and allow them to plan their finances as per their affordability. To understand whether an individual will be capable of paying the two crore term insurance premium, they factor in their income and financial standing to suggest plans they deem fit for the intending policy buyers.

Expenses:

Individuals are also advised to weigh their ongoing expenses to understand their financial obligations burden effectively. Typically, individuals need to account for their existing loans, child’s education, ongoing EMIs, future expenses and obligations, and retirement goals to understand their needs and whether the policy cover would help to meet them.

However, individuals must account for both their current and future obligations that they or the family are likely to incur during the term period to understand how their bulk of expenses are and to make an effective decision. Comparing income with expenses will enable them to understand whether the chosen coverage value would suffice or not in the long term.

Who should get a 2 crore term insurance policy?

Any individual above the age of 18 can benefit from a two-crore term insurance policy. However, some individuals will benefit from it more than others. Typically, individuals who have just started their career and want to secure the financial future of their family can get a two crore term insurance. They can leverage their young age to secure robust coverage at affordable rates to build a reliable financial safety net.

Similarly, individuals with multiple dependents can benefit from a two Crore Term insurance policy. It will enable them to build a financial safety net and help them account for current and ongoing financial obligations. The coverage will allow the policy beneficiary to retain their current financial and living standard and meet their expenses without dipping into their savings.

Insurance policy is a personal choice. This is why individuals should weigh their financial standing, current and future obligations, and family’s financial needs to ensure that they pick a policy that meets these requirements. In addition, they should check the features of the plan and the service of the insurer to ensure a hassle-free experience when buying the policy or raising a claim.